Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations

Desai, Malay N. and Lockett, Andrew and Paton, David (2017) Information asymmetries in the hiring process and the risk of new leader dismissal: insights from English premier league soccer organizations. British Journal of Management . ISSN 1467-8551

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Abstract

Why are some new leaders dismissed quicker than others? Adopting agency theory logic we examine how different succession contexts shape boards’ information asymmetries about a potential candidate’s competencies in the hiring process, which influences the propensity of making poor hiring decisions and hence the risk of new leader dismissal. Employing duration analysis on a sample of 164 newly appointed leaders in the English premier league (1996 –2014), we find that the risk of new leader dismissal is: (i) greater when the predecessor leader’s exit was initiated by them rather than by the board; (ii) greater when following a longer tenured predecessor; and (iii) lower for outside successions as compared to inside successions.

Item Type: Article
Additional Information: This is the peer reviewed version of the following article: Desai, M.N., Lockett, A. and Paton, D. (2017), Information Asymmetries in the Hiring Process and the Risk of New Leader Dismissal: Insights from English Premier League Soccer Organizations. Brit J Manage., which has been published in final form at doi:10.1111/1467-8551.12210. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Keywords: New leader dismissal, Leader succession, Agency theory, Asymmetric information New leader dismissal, leader succession, agency theory, asymmetric information
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: https://doi.org/10.1111/1467-8551.12210
Depositing User: Howis, Jennifer
Date Deposited: 01 Dec 2016 09:35
Last Modified: 06 Feb 2017 13:28
URI: http://eprints.nottingham.ac.uk/id/eprint/39090

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